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Australia’s leading ADR organisation since 1975
the
Arbitration Rules
IAMA
Incorporating the IAMA Fast Track Arbitration Rules
Australia’s leading ADR organisation since 1975
the
Arbitration Rules
IAMA
Incorporating the IAMA Fast Track Arbitration Rules
T h e I A M A A r b i t r a t i o n R u l e s I n c o r p o r a t i n g t h e I A M A F a s t Tr a c k A r b i t r a t i o n R u l e s
AUTHORITY FOR RULES
On 1 June 2007 the Council of the Institute of Arbitrators & Mediators Australia (‘IAMA’) resolved that,
where parties agree to submit a dispute between them to arbitration in accordance with:
1.
The IAMA Arbitration Rules; or
2.
The IAMA Fast Track Arbitration Rules,
then these Rules shall apply and that the former 1999 Rules for the Conduct of Commercial Arbitrations
(including the Expedited Commercial Arbitration Rules) shall be superseded, except when the former 1999
Rules apply under an agreement to arbitrate.
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PART I
GENERAL
RULE 1
Overriding Objective
The Overriding Objective of these Rules is that the arbitration is conducted:
a.
b.
fairly, expeditiously and cost effectively; and
in a manner which is proportionate to:
i.
ii.
iii.
RULE 2
the amount of money involved;
the complexity of the issues; and
any other relevant matter.
Definitions
In these Rules:
Institute of Arbitrators & Mediators Australia or IAMA means the Council of Institute of Arbitrators and
Mediators Australia;
Agreement means any written agreement between the parties to submit present or future disputes to
arbitration;
Arbitrator means an arbitrator who has entered on the reference to arbitration;
Costs of the arbitration includes the costs of the reference and the costs and disbursements of the parties;
Costs of the reference includes the fees and expenses of an Arbitrator or Nominee Arbitrator, any Nomination
Fee or other fee payable to IAMA, the costs of room hire or transcript, and any fees or expenses pursuant to
paragraph 2 of Rule 18;
Court means any Court which has jurisdiction under the Statute Law which governs arbitration in the place
where the arbitration is held;
Days means normal working days and shall exclude Saturdays, Sundays, public holidays and any nonbusiness day at the place of business of the addressee;
Domestic arbitration means any arbitration which is not an international arbitration;
Experts’ Conclave means a meeting chaired by the Arbitrator of experts engaged by the parties;
International arbitration means arbitration where one or more of the parties to the Agreement does not carry
on business within the Commonwealth of Australia;
Model Law means the UNCITRAL Model Law on International Commercial Arbitration adopted by the
United Nations Commission on International Trade Law on 21 June 1985;
Nominee Arbitrator means an arbitrator who has been nominated by IAMA or agreed by the parties but who
has not entered on the reference to arbitration;
Nomination Fee means such amount as may be prescribed by IAMA from time to time for it to nominate an
arbitrator or arbitrators;
Notice of Dispute means a written notice of the dispute under Rule 6;
Preliminary Conference means a conference of the parties convened by the Nominee Arbitrator or
Arbitrator; and
Stop Clock arbitration means a procedure by which the time allocated for the hearing is divided between the
parties and is recorded progressively to ensure adherence to the allocated periods.
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RULE 3
Application of Rules
1.
These Rules are subject to the law governing arbitration in the location where the arbitration is
conducted and to any agreement between the parties as to procedure. Otherwise where the parties to a
dispute have agreed to arbitration in accordance with these Rules, they are bound to comply with these
Rules.
2.
These Rules shall apply to domestic arbitrations and, subject to Rule 22, to international arbitrations.
RULE 4
Counting of Days
1.
Any period of days under these Rules shall begin on the day following the day when notice,
notification, communication or proposal is actually received or deemed to be received under paragraph
2 of this Rule, whichever is earlier.
2.
Any notice, notification, communication or proposal which is posted is deemed to have been received
on the second day following the day of posting. Any notice, notification, communication or proposal
which is sent by facsimile or other means of telecommunication or electronic transmission is deemed
to have been received on the day of transmission.
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PART II
COMMENCEMENT OF PROCEEDINGS
RULE 5
Nomination of Arbitrators
1.
Nomination of arbitrators shall be by IAMA, which may delegate its power of nomination to the person
acting as the:
a.
b.
2.
President; or
Chairman of any State or Territory Chapter.
Nothing in these Rules prevents the parties from agreeing on an arbitrator or arbitrators of their choice.
RULE 6
Notice of Dispute
1.
This Rule applies except where it is inconsistent with an Agreement.
2.
If a dispute or difference of the kind described in an Agreement arises, any party to it may give a Notice
of Dispute to the other party or parties.
3.
The Notice of Dispute shall be served at the address of such party or parties recorded in the Agreement.
Service may be effected personally, or by mail, facsimile, telecommunication or electronic
transmission.
4.
Unless settled beforehand, the dispute or difference described in the Notice of Dispute shall be deemed
to be referred to arbitration in accordance with these Rules ten (10) days after service of the Notice of
Dispute.
5.
The parties may agree in writing that a Notice of Dispute is not required and may then jointly seek
nomination of an arbitrator by IAMA under paragraph 2 of Rule 8.
RULE 7
Nomination Fee
1.
The party giving a Notice of Dispute must pay the Nomination Fee to IAMA and provide evidence of
payment with the Notice of Dispute.
2.
If the parties agree to jointly seek nomination of an arbitrator they must jointly pay the Nomination Fee
to IAMA.
3.
Unless the Nomination Fee is paid to IAMA, IAMA is not required to nominate an arbitrator under
Rule 8.
RULE 8
1.
Call for Nomination
Where a Notice of Dispute has been given under either the Agreement or Rule 6, and the dispute has
not been settled within any time there specified, any party may request IAMA to nominate an arbitrator
and in doing so must submit the following to IAMA:
a.
b.
c.
d.
a copy of the Notice of Dispute;
a copy of the Agreement;
the names and addresses of the parties to the dispute; and
a description of the dispute sufficient to enable IAMA to nominate an appropriate arbitrator.
2.
If the parties agree to jointly seek nomination of an arbitrator then, in addition to the material in
paragraph 1 of this Rule, they shall provide to IAMA a copy of the agreement for the joint appointment.
3.
Within ten (10) days after receipt of the material described in paragraphs 1 or 2, or any further
information IAMA may require to enable a nomination, IAMA shall nominate an arbitrator and inform
the parties and the Nominee Arbitrator of such nomination.
4.
Unless the Agreement provides otherwise, IAMA shall nominate one arbitrator only.
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RULE 9
Entry on Reference to Arbitration
1.
Within five (5) days of the nomination or agreed appointment, the Nominee Arbitrator shall give
written notice to the parties of the time and place of a Preliminary Conference.
2.
Before the Preliminary Conference each party shall inform the Nominee Arbitrator and the other party
or parties of the names of those who will attend.
3.
At or before the Preliminary Conference the Nominee Arbitrator may request the parties to confirm
their agreement that the Nominee Arbitrator has jurisdiction to determine the dispute.
4.
At or before the Preliminary Conference the Nominee Arbitrator may inform the parties of any
conditions of appointment (including provision of security for the fees and expenses of the Nominee
Arbitrator) and request the parties to agree to any conditions.
5.
If the parties agree to the conditions of appointment and to the jurisdiction of the Nominee Arbitrator,
he or she shall accept appointment and shall enter on the reference as the Arbitrator.
6.
The Nominee Arbitrator may accept the appointment and enter on the reference as the Arbitrator even
though all parties have not agreed to the conditions of appointment or to the jurisdiction of the Nominee
Arbitrator. Written notice of the acceptance and entry on the reference by the Nominee Arbitrator shall
be given to the parties and IAMA.
7.
In accepting the appointment and entering on the reference as the Arbitrator, the Nominee Arbitrator
may rule on his or her jurisdiction, including an objection as to the existence or validity of the
Agreement.
8.
The Nominee Arbitrator may decline the appointment and decline to enter on the reference as Arbitrator
and advise the parties and IAMA. IAMA shall nominate a replacement Nominee Arbitrator within ten
(10) days of receipt of this advice, and paragraphs 1 to 6 of Rule 9 shall apply to the replacement
Nominee Arbitrator.
RULE 10
If:
1.
2.
Nominee Arbitrator Failing to Act / Loss of Arbitrator
a Nominee Arbitrator does not enter upon the reference to arbitration within one (1) month of the date
of the nomination; or
after entering on the reference to arbitration, an Arbitrator dies or becomes incapable of continuing with
the reference to arbitration;
then IAMA shall nominate a replacement Arbitrator within ten (10) days of a request by a party that it do so.
RULE 11
Liability of IAMA for Acts or Omissions
The parties agree that IAMA, its officers and employees are not liable to any party for anything done or
omitted to be done in good faith in the exercise of IAMA’s functions under these Rules.
RULE 12
Provision of Security
1.
The Arbitrator may direct the parties to provide security for the costs of the reference in the amounts
and at the times nominated by the Arbitrator. The security shall be deposited and applied as directed by
the Arbitrator.
2.
The Arbitrator may make any direction which he or she considers appropriate if a party defaults in the
provision of security.
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PART III
THE ARBITRATION PROCEDURE
RULE 13
Preliminaries not to Prejudice Scope of Arbitration
Unless otherwise agreed in writing by the parties:
1.
Any description of a claim in a Notice of Dispute under Rule 6 or in a description submitted under Rule
8 (1)(d) shall not define or limit the scope of the arbitration.
2.
Any party may include in its pleadings or contentions any other dispute or difference which may be
referred to arbitration under the Agreement.
3.
Any subsequent amendment or addition to the claims made in the pleadings or contentions will be in
the discretion of the Arbitrator.
RULE 14
General Duty of Arbitrator
1.
The Arbitrator must conduct the arbitration in accordance with the Overriding Objective, and shall
adopt procedures suitable to the particular case, avoiding unnecessary delay and expense so as to
provide a fair, expeditious and cost-effective process for determination of the dispute.
2.
The Arbitrator shall be independent of, and act fairly and impartially as between the parties, giving each
party a reasonable opportunity to put its case and to respond to that of any opposing party, and a
reasonable opportunity to be heard on the procedure adopted or proposed to be adopted by the
Arbitrator.
RULE 15
1.
General Duty of Parties
The parties must do all things in the course of the arbitration:
a.
b.
for the arbitration to be conducted in accordance with the Overriding Objective; and
necessary for the fair, expeditious and cost-effective conduct of the arbitration.
2.
The parties must comply without delay with any direction or ruling by the Arbitrator as to procedural
or evidentiary matters.
3.
Where appropriate, the parties shall without delay take any necessary steps to obtain a decision of a
Court on any question of jurisdiction or law.
RULE 16
1.
Waiver of Right to Object
If a party to an arbitration takes part, or continues to take part, in the arbitration without objecting
within a reasonable time that:
a.
b.
c.
d.
the Arbitrator lacks jurisdiction;
the arbitration has been improperly conducted;
there has been a failure to comply with the Agreement; or
there has been any other irregularity affecting the Arbitrator or the arbitration,
then that party shall be deemed to have waived its right to make such objection later, before the
Arbitrator or a Court, unless it shows that, at the relevant time it did not know and could not with
reasonable diligence have discovered the grounds for the objection.
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2.
Where:
(a) the Arbitrator makes a ruling as to jurisdiction; and
(b) a party to the arbitration who could have challenged that ruling in a Court does not do so within
any time fixed by the Arbitrator (or if no time is fixed, within a reasonable time and not later than
the conclusion of any hearing),
then that party shall be deemed to have waived any right to object later to the Arbitrator’s jurisdiction
on any ground which was the subject of that ruling, and shall be deemed to have submitted to the
Arbitrator’s jurisdiction.
RULE 17
Procedural Directions
1.
Subject to any prior written agreement of the parties, the requirements of Rule 14 and paragraph 2 of
this Rule, the Arbitrator shall make such directions or rulings in respect of procedural and evidentiary
matters as he or she sees fit.
2.
Subject to any agreement of the parties to the contrary, in order to give effect to the Overriding
Objective the Arbitrator shall have, in addition to the general procedural authority in paragraph 1, the
widest discretion:
a.
b.
3.
to exercise procedural control of the conduct of the arbitration including the power to limit the
time to be taken for any aspect of the proceedings not otherwise agreed by the parties; and
to give appropriate directions in the event of default by either party in compliance with any
agreed or fixed time period, or with a procedural direction by the Arbitrator.
Subject to any agreement of the parties to the contrary, and without limiting the generality of
paragraphs 1 and 2 of this rule:
a.
b.
RULE 18
unless the arbitration is to be conducted in accordance with the IAMA Fast Track Arbitration
Rules, the provisions of Schedule 1 shall apply; and
where the arbitration is to be conducted in accordance with the IAMA Fast Track Arbitration
Rules, the provisions of Schedule 2 shall apply.
Views and Other Material
1.
The Arbitrator may view the subject matter of any dispute if the Arbitrator considers that a view may
assist the Arbitrator to determine the dispute. The Arbitrator may use observations made on the view
not merely to assist in understanding the evidence but also in determining the issues in dispute provided
that the Arbitrator notifies the parties of any potentially adverse conclusion based solely, or in part, on
those observations and affords the parties an opportunity to meet it.
2.
Subject to any agreement of the parties to the contrary, the Arbitrator may obtain such technical and
legal assistance or advice as the Arbitrator may reasonably require provided that the Arbitrator:
(i) requests the agreement of the parties before obtaining such assistance or advice; and
(ii) provides an opportunity to the parties to review and be heard in relation to the technical and legal
assistance and advice obtained.
The cost of obtaining such assistance and advice shall form part of the costs of the reference.
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RULE 19
Awards
1.
The Arbitrator must deliver one or more interim awards dealing with all issues in the arbitration except
for the costs of the arbitration within a reasonable time of the conclusion of the hearing.
2.
At the time and as directed by the Arbitrator, the parties shall provide such evidence and submissions
on which they rely on the question of costs.
3.
The Arbitrator shall as soon as reasonably practicable deliver a final award including the Arbitrator’s
determination on the costs of the arbitration, by whom they are to be paid and the basis of assessment
for the whole or any part of those costs.
4.
Awards of the Arbitrator shall be made in writing, and either forwarded by mail to the parties, or the
Arbitrator may advise the parties that the award may be collected at a place nominated by the Arbitrator.
5.
In the event that security moneys lodged are less than the amount which the Arbitrator determines as
the costs of the reference and any other amounts to be paid from that security, then the Arbitrator may
withhold the award until the outstanding balance has been paid as directed by the Arbitrator.
RULE 20
Multiple Arbitrators – Appointment of Umpire
1.
Where there is more than one Arbitrator then, references in these Rules to an Arbitrator shall be a
reference to the Arbitrators and, subject to Rule 21, to any umpire who is appointed.
2.
Where there is an even number of Arbitrators, those Arbitrators may appoint an umpire, and shall do so
if the Arbitrators fail to agree on any matter for determination.
3.
If the Arbitrators are unable to agree on the identity of the umpire within seven (7) days of their
disagreement, then they shall notify the parties accordingly in writing. Any party may then make a
written request to IAMA to nominate an umpire. IAMA shall within ten (10) days thereafter nominate
an umpire and advise the parties, the Arbitrators and the nominated umpire accordingly.
RULE 21
Determination by an Umpire
1.
Where an umpire is appointed under Rule 20 and the Arbitrators fail to agree on any matter for
determination, then the Arbitrators shall provide the umpire with a joint written statement listing the
points of agreement and disagreement, together with all written material relevant to the matter in issue
including exhibits.
2.
The material referred to in paragraph 1 of this Rule shall be provided to the umpire within five (5) days
of written notice by the umpire of acceptance of the nomination as umpire. The Arbitrators shall, by the
same time, provide copies of their written statement of the points of agreement and disagreement to the
parties.
3.
Unless otherwise agreed by the parties, the umpire shall proceed to deliver an award as soon as
reasonably practicable taking into account the written material provided by the Arbitrators but shall not
be bound by any of the points of agreement between the Arbitrators.
RULE 22
International Arbitrations
1.
The Model Law shall apply to any international arbitration conducted under these Rules.
2.
The provisions of Rules 1 to 21 inclusive shall also apply to any international arbitration conducted
under these Rules to the extent that any such Rule or Rules are not inconsistent with the Model Law
which shall prevail to the extent of any inconsistency.
3.
The functions under Article 6 of the Model Law shall be performed by IAMA which may, by resolution
of Council and in accordance with the Memorandum and Articles of Association of IAMA, delegate
the performance of those functions to the President for the time being or the person so acting.
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SCHEDULE 1
GENERAL ARBITRATION PROCEDURE
The Arbitrator may make such directions or rulings he or she considers appropriate, including in respect of
the following:
1.
The form and extent of any pleadings or other documents defining the issues in dispute, including the
extent to which particularisation should be provided.
2.
The preparation of any joint statement of issues to define and narrow the issues in dispute.
3.
The holding of further Preliminary Conferences, meetings between experts and/or representatives of
the parties, or Experts’ Conclaves, so as to define and narrow the issues in dispute, including the time
at which any such meeting shall be held and the procedure to be adopted for the conduct and the
recording of the results of such meetings.
4.
The preparation of joint reports by experts engaged by the parties following any meetings between such
experts or any Experts’ Conclave and the form and content of such joint reports.
5.
The preparation of joint bundles of documents for use in any aspect of the arbitration.
6.
The provision of factual information to experts for the parties for use in their joint deliberations or
preparation of any joint report.
7.
The manner and extent which the parties will be obliged to produce documents for inspection by any
opposing party.
8.
The form of any evidence in chief, by witness statement or otherwise, and the times at which it is to be
provided to the Arbitrator and any other party.
9.
Whether an oral hearing is required and any limitations on the hearing, including reasonable limits on
oral evidence and cross examination and the provision of written opening addresses and final
submissions.
10. The service of offers of settlement without prejudice except as to costs.
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SCHEDULE 2
FAST TRACK ARBITRATION PROCEDURE
The arbitration shall be conducted in the following manner:
1.
The particular objective of this Schedule is to enable an Arbitrator to produce an award (except as to
costs) within one hundred and fifty (150) days after the Arbitrator enters upon the reference.
2.
All time periods in this Fast Track Arbitration Procedure are calculated from the day after the Arbitrator
enters in the reference under Rule 9.
3.
On or before the 20th day the claimant shall provide the following to each other party and to the
Arbitrator:
a.
b.
c.
d.
4.
On or before the 40th day each party other than the claimant shall provide the following to the other
parties and to the Arbitrator:
a.
b.
c.
d.
e.
5.
a written statement of the nature of the dispute, the legal and factual issues, its contentions as to
those issues, and the amount of its claim;
all statements of evidence and copies of all documents on which it relies;
any expert report on which it relies; and
its written submissions on the legal and factual issues involved in its claim.
a written statement responding to the claimant’s written statement under paragraph 3a, its
statement of the nature of the dispute (including any cross claim), the legal and factual issues in
the claimant’s claim and any cross claim, its contentions as to those issues, and the amount of
any cross claim;
all statements of evidence and copies of all documents on which it relies;
any expert report on which it relies;
any objections which it has to the statements of evidence, any expert report, and documents
served by the claimant, detailing the basis of objection; and
its written submissions on the legal and factual issues involved in the claimant’s claim and any
cross claim.
On or before the 55th day, any party may reply to written material provided under paragraph 4, by
providing to the other parties and to the Arbitrator:
a.
b.
c.
d.
e.
a written statement responding to the written statement under paragraph 4a and, its reply as to
the nature of the dispute, the issues likely to arise and its contentions in relation to the issues;
all statements of evidence and copies of documents in reply to material served under paragraph
4b;
any expert report in reply to material provided under paragraph 4c;
any objections to the statements of evidence, any expert report, and documents served under to
paragraph 4b, detailing the basis of objection; and
its written submissions in reply on the legal and factual issues involved.
6.
If a cross claim is made under paragraph 4, then on or before the 70th day the cross claimant may reply
(as set out in paragraph 5) to the material served in response to the cross claim under paragraph 5.
7.
The Arbitrator may direct that in the alternative to paragraphs 3c, 4c, 5c and 6:
a.
b.
c.
d.
the experts retained by the parties each be provided with the material otherwise served under
paragraphs 3, 4, 5 and 6;
the Arbitrator provide a list of issues to be addressed by the experts;
the experts are to jointly confer and produce a joint report or reports; and
the form and content of any joint report shall be as directed by the Arbitrator and be provided on
or before the 85th day.
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8.
If the Arbitrator considers it appropriate, the experts retained by the parties may be directed to attend
one or more Experts’ Conclaves. Any such Conclaves are to be conducted and recorded as directed by
the Arbitrator, and shall be held and completed on or before the 90th day.
9.
The Arbitrator may make other directions or rulings as considered appropriate, including directions or
rulings referred to in paragraphs 1, 2, 3, 5, 6, 7 and 10 of Schedule 1.
10. The Arbitrator shall determine the matter based on the written material served or produced under this
Schedule unless the Arbitrator determines that a hearing is necessary to explain or resolve any conflicts
in the written material.
11. If the Arbitrator determines that a hearing be held, then that hearing:
a.
b.
c.
shall be completed on or before the 120th day;
shall be conducted as directed by the Arbitrator, including the imposition of time limits on oral
evidence, and the provision of written opening addresses and final submissions; and
may be conducted as a ‘Stop Clock’ arbitration if directed by the Arbitrator or agreed upon by
the parties.
12. The time by which the Arbitrator is to deliver the award shall be agreed between the parties and the
Arbitrator. In the absence of agreement, the arbitrator shall deliver the award on or before the 150th day.
The parties acknowledge that the extent of reasons for the award by the Arbitrator shall be proportionate
to the time available to the arbitrator to deliver the award.
13. Any times fixed in accordance with this Schedule may be varied by agreement of the parties. In the
absence of such agreement the Arbitrator may vary the times fixed:
a.
b.
c.
d.
only in exceptional circumstances, and if the Arbitrator is satisfied that a variation of any fixed
time or times is required in the interests of justice;
on such terms as to costs or otherwise as the Arbitrator considers reasonable in the
circumstances;
to a maximum total period of ten (10) days to the total time fixed under these Rules for actions
by each party; and
to a maximum total period of ten (10) days for actions by the Arbitrator.
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NOTES
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NOTES
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NOTES
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NOTES
15
The Institute of Arbitrators & Mediators Australia (‘IAMA’) is the nation’s leading and largest independent Alternative Dispute
Resolution (‘ADR’) organisation. Founded in 1975, IAMA provides services in all forms of ADR including arbitration, mediation,
conciliation, adjudication, and expert determination. With a growing membership that comprises some of Australia’s most eminent
and experienced ADR practitioners and trainers, the Institute is known for facilitating the most practical and most rewarding
professional development training for professionals of all industries. By providing education and training on current developments in
ADR, the Institute encourages its members and the public to continue to learn and experience reasons that make ADR increasingly
popular in Australia and overseas as an effective and economical method of resolving disputes.
The Institute’s dispute resolution services, education, and training include:

A national database of highly qualified and experienced dispute resolvers, who have been graded as Arbitrators,
or accredited as mediators, adjudicators and/or other ADR practitioners.

Nomination of arbitrators, mediators, adjudicators, and other ADR neutrals from a database of practitioners accredited by the
Institute based on their training and experience and compliance with the Institute’s CPD requirements.

Administered Industry-based Consume Dispute Resolution Schemes.

Cost and time effective packages for all forms of ADR courses and training programs (members receive discounted rates).

Ongoing Continuing Professional Development opportunities and pupillage training and experience for newly-qualified
practitioners.

ADR Resources including a peer-reviewed journal of articles, case notes and book reviews, monthly newsletters, practice notes,
rules and guidelines, and all other corporate publications (members have unrestricted access).

Online profile and CPD tracking functions (members only).
If you are interested in joining IAMA, click here to apply online.
visit www.iama.org.au or contact your State Chapter for information
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IAMA NSW &
Dispute Resolution Centre
P Level 9, 52 Phillip Street, Sydney
NSW 2000
DX 15 SYDNEY
T (02) 9241 1188
F (02) 9252 2911
E [email protected]
IAMA SA
P 213 Greenhill Road, Eastwood
SA 5063
T 1800 724 262
F (02) 8280 9763
E [email protected]
IAMA WA & NT
P PO Box 208, Beechboro, WA 6063
T (08) 6278 2022
F (08) 6278 2033
E [email protected]
Publisher: The Institute of Arbitrators & Mediators Australia (National Office)
P: Level 9, 52 Phillip Street, Sydney, NSW 2000 Australia T: (02) 9241 1188 F: (02) 9252 2911 E: [email protected] W: www.iama.org.au
Copyright: © 2007 The Institute of Arbitrators & Mediators Australia